Human Capital and Macroeconomic Growth: Austria and Germany 1960-1997 - An Update

Koman, Reinhard and Marin, Dalia (September 1999) Human Capital and Macroeconomic Growth: Austria and Germany 1960-1997 - An Update. Former Series > Working Paper Series > IHS Economics Series 69


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Abstract: In an influential paper Mankiw, Romer, and Weil (1992) argue that the evidence on the international disparity in per-capita income levels and growth rates is consistent with a standard Solow model, once it has been augmented to include human capital as an accumulable factor. In a study on Austria and Germany we augment the Solow model to allow for the accumulation of human capital. Based on a perpetual inventory procedure we construct measures of human capital stocks. We find that thetime series evidence on Austria and Germany is not consistent with a human-capital-augmented Solow model. Factor accumulation appears to be less (and not more) able to account for the cross-country growth performance of Austria and Germany when human capital accumulation is included. Our results indicate that differences in technology are a driving factor in understanding cross-country growth between these two neighboring countries with similar political and institutional background.;

Item Type: IHS Series
Keywords: 'Economic Growth' 'Total Factor Productivity' 'Human Capital' 'Technical Change' 'Growth Accounting'
Classification Codes (e.g. JEL): O1, O3, O4
Date Deposited: 26 Sep 2014 10:37
Last Modified: 27 Sep 2019 06:32

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